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Company Set Up in Indonesia

Generally to establish a company, there are some requirement procedures to follow. In Indonesia, the procedures to set up a Foreign Investment Company (known as Penanaman Modal Asing/ PMA) are as mentioned below.

Establishment of PMA Company:

1. BKPM Approval

In Indonesia, there is a government body that appointed to help investors in their investment plan in Indonesia. Badan Koordinasi Penanaman Modal / BKPM (Investment Coordinating Board) is authorized to issue approval or to reject the investment plan.

To have an approval from BKPM, is the main step of our plan in order to establish a PMA Company in Indonesia.

2. Deed of Establishment and MOLHR Approval

After having the BKPM Approval, we need to drawn up the Deed of Establishment (DOE) before the Indonesian Notary.

The Notary will register your proposed company in order to have approval from the Minister of Law and Human Rights (MOLHR). After having this approval, the company is officially have its status as a Legal Entity.

3. Letter of Domicile

Letter of Domicile (LOD) is required to prove your existing company in Indonesia. LOD is issued by the Municipal Agency which covers the area of the company.

4. Tax Registration

Your company must have a tax register number, that issued by related tax office. This license commonly known as Nomor Pokok Wajib Pajak/NPWP (Taxpayers Registration Number).

5. Business License

This License is issued by BKPM, depending on your companys main business. Commonly known as Izin Usaha/IU.

6. Company Registration

The final step to set up the Indonesian company (PMA Company) is to register your company by attaching all the required documents as mentioned above.


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  19 Mei 2019